Fri, Jul 22, 2011 - 10:21pm

Just two simple charts for you to chew on over the weekend. I'll be unavailable for a couple of days as I'm headed to where the streets have no name. It'll be a sort of homecoming for me in the city of blinding lights, out there in God's country, where the land is often as white as snow. This time of year, however, it should be a couple of beautiful days.

First up, here's a weekly silver. As you can see, the uptrend from 2010 appears to be firmly intact. This chart confirms for me, however, that silver, above 40, will encounter some resistance around 42 to 42.50. It won't be the end of the world but there may be a period of a few weeks where gold will outperform. Ah...silver and gold. What a pair! Two hearts that beat as one!

Gold, on the other hand, looks magnificent...almost like staring at the sun. Gold may often seem to move in mysterious ways but, in fact, it moves with grace. Once you realize that the goal of The Cartel is to manage its ascent, you can begin to see, and rely upon, repeating patterns. The most grand of patterns is evident on the chart below:

The pattern above is not just the real thing, it's even better than the real thing. Note how, since 2009, gold has followed a six-month pattern of, roughly, 20 weeks UP followed by 6 weeks down. It may appear out of control but it is, in fact, the sweetest thing. Gold is now clearly into its next 20 week UP cycle. Following pattern, we should expect a mid-November high, somewhere in the neighborhood of $1800. Not bad.

That's it for now. I must walk on with or without you. I hope you have a great weekend though of course, some days are better than others. This is my exit but I'll be back in three sunrises. TF

About the Author

tfmetalsreport [at] gmail [dot] com ()


Jul 24, 2011 - 6:03pm



Jul 24, 2011 - 6:01pm
Jul 24, 2011 - 5:58pm

Tick Tock on the gold and

Tick Tock on the gold and silver clock!

Jul 24, 2011 - 5:52pm


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I think you are just misremembering the specific endearing nickname you used for the prez... :-) Hope you find it, I vaguely remember s bit of ruckus on the topic.

Jul 24, 2011 - 5:48pm

Hmmmm been thinking again.

Hmmmm been thinking again. (Yeah I know, bad idea. LOL) Anywho, what if TPTB are trying for a lower dollar so that all those companies with cash can repatriate it at a higher number of dollars? Could this be part of the plan? Maybe the tax holiday for repatriating the cashola? Hmmmm.

Jul 24, 2011 - 5:38pm
Jul 24, 2011 - 5:34pm

@terri, me too...

I just applied for the 401k loan the other day after deciding once and for all that I would be in a better position in PM's than in stocks in the company-directed portion of my 401k. Here are my thoughts, but I'm still looking at the best way to go about this.

My loan will be much larger (>$30K). I could make the payments out of pocket in a pinch, but I don't really intend to. I intend to hold back enough cash for the first 2 months of payments (so I'm not at the mercy of a short-term dip), then use the rest to buy PM's.

Silver is really attractive, but I'm not comfortable with the idea that it may dip fast and furious, possibly at a bad time. Gold seems much more stable over time. So I am intending to purchase gold. I will do it in 3 or 4 chunks (all transactions less than $10K), and I'm looking for dips before buying.

My intention is that every few months I will sell an ounce of gold when I see a nice peak somewhere and set that money aside to keep making payments.

I estimate by the time the loan is finally paid off, I should be left with several ounces of gold. If worse came to worse (i.e. lost my job), I'd simply cash out the 401k, pay the exorbitant taxes, and use whatever's left to buy more PM's.

I used to think doing this was risky. I now am of the firm belief that leaving money in my 401k is more risky than taking a loan and buying PM's from it.

I would never consider doing this with a credit card or home equity loan, this is money that is already mine, I just have to jump through the government's hoops in order to access a portion of it (and the interest rate on it is only 4.5%, paid back to myself, minus fees), therefore I do not consider it real "debt". If I default on the loan for some reason, I'll owe taxes and nothing more (albeit quite a bit of taxes), which I should be able to pay off rather easily by selling PM's if needed.

The risk is minimal compared to the possible benefits, IMO.

I'm already pretty well invested in Gold and Silver physical, about 2/3 silver and 1/3 Gold. This will tip the balance toward Gold for me.

Terri, as far as "when to buy"... conventional wisdom prevails... buy the dips. Don't worry about the news, just watch the price and when you see it go down significantly, buy in.

Jul 24, 2011 - 5:25pm

Hey Doc

Can't find the post I spoke of on the old site. Kind of strange actually. I did a search of "darkpurplehaze tfmetalsreport.blogspot.com President Barry" and found nothing about it.

Found other posts from me and references to barry or berry etc within the search parameters but not my original post. H'mmm......?

Maybe CA Lawyer will find the conversation if he remembers the time frame better. I'll go back and look if I can find the time. I think I wrote on a Friday night in April and got some flak for it on Saturday. Maybe it was Saturday and it was Sunday a.m. I caught the flak. May? Idk.

I do know I should have been able to find my post. I also think in all humility (seriously) that I was right. Is there a way to search this new site and get old TF blog stuff? I already tried to search the same thing on this new site.

Now I want to find the article.

Jul 24, 2011 - 4:59pm

what would you do

ok guys need help... I have $13K to invest in metals...took it from my 401K as a loan. It is literally earning just about nothing right now I actually took out a little more than $13K but I put enough money aside to cover payments for a year. I probably have$3500-4000 already in silver.

First would you buy tonight or hold and wait for the deal to happen?

Second, what percentage would you put into gold and how much in silver?

Purpose: to protect what I have of my 401 that I could actually get my hands on ...make a little money on my physical to pay back the 401K yet still hold metal. Already have food...

Thanks a bunch!

Jul 24, 2011 - 4:52pm

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